MINISTRY OF ENERGY AND MINERAL RESOURCESMINISTRY OF ENERGY AND MINERAL RESOURCESTHE REPUBLIC OF INDONESIATHE REPUBLIC OF INDONESIA

STATUS STATUS OIL & GAS EXPLORATION AND OIL & GAS EXPLORATION AND PRODUCTION IN INDONESIAPRODUCTION IN INDONESIAPRODUCTION IN INDONESIAPRODUCTION IN INDONESIA

by :by :by :by :YUNAN MUZAFFARYUNAN MUZAFFAR

HEAD OF NEW ACREAGE PREPARATIONHEAD OF NEW ACREAGE PREPARATIONDIRECTORATE OF UPSTREAM BUSINESS DEVELOPMENTDIRECTORATE OF UPSTREAM BUSINESS DEVELOPMENT

Presented at: CCOP – NORWAY PROGRAM FOR ENGANCING PUBLIC PETROLEUM

MANAGEMENT OF THE CCOP MEMBER COUNTRIES

PARAPAT, PARAPAT, NORTH SUMATERA, April 27th, 2010NORTH SUMATERA, April 27th, 2010

MANAGEMENT OF THE CCOP MEMBER COUNTRIES

MINISTRY OFMINISTRY OF

E&MRE&MR

OUTLINEOUTLINE

ROLEROLE OFOF OILOIL ANDAND GASGAS INDUSTRIESINDUSTRIES

OILOIL ANDAND GASGAS POLICYPOLICY

UPSTREAMUPSTREAM CONDITIONCONDITION ININ INDONESIAINDONESIA

OPPORTUNITIESOPPORTUNITIES ANDAND CHALLENGINGCHALLENGING ININFRONTIERFRONTIER AREAAREA

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

ROLE OF OIL AND GAS ROLE OF OIL AND GAS INDUSTRIESINDUSTRIES

ROLE OF OIL AND GAS ROLE OF OIL AND GAS INDUSTRIESINDUSTRIESINDUSTRIESINDUSTRIESINDUSTRIESINDUSTRIES

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MRROLE OF OIL AND GAS INDUSTRIESROLE OF OIL AND GAS INDUSTRIESROLE OF OIL AND GAS INDUSTRIESROLE OF OIL AND GAS INDUSTRIES

NATIONAL SUSTAINABLE DEVELOPMENTNATIONAL SUSTAINABLE DEVELOPMENTNATIONAL SUSTAINABLE DEVELOPMENTNATIONAL SUSTAINABLE DEVELOPMENT

SOURCE OF SOURCE OF DOMESTIC DOMESTIC INDUSTRY INDUSTRY MULTYPLIERMULTYPLIER

STATE STATE

REVENUEREVENUEFUELFUEL FEEDSTOCKFEEDSTOCK EFFECTSEFFECTS

OIL AND GAS INDUSTRYOIL AND GAS INDUSTRY

HIGH HIGH HIGH HIGH HIGH HIGH

© DJMIGAS 2010

TECH.TECH. CAPITALCAPITAL RISKRISK

MINISTRY OFMINISTRY OF

E&MRE&MR

OIL AND GAS POLICYOIL AND GAS POLICYOIL AND GAS POLICYOIL AND GAS POLICY

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR POLICY POLICY ANDAND TARGETSTARGETSOF INDONESIA OIL & GAS MANAGEMENTOF INDONESIA OIL & GAS MANAGEMENT

TARGETS FOR 2025TARGETS FOR 2025PETROLEUM POLICYPETROLEUM POLICY

Oil and Gas Supply Security

OF INDONESIA OIL & GAS MANAGEMENTOF INDONESIA OIL & GAS MANAGEMENT

TARGETS FOR 2025TARGETS FOR 2025Maintain oil production level of 1 Million BOPD

Oil and Gas Supply Security

Oil And Gas Utilization

Oil and Gas Pricing Policy

50% national operatorshipUnconventional Oil and Gas Business

Conservation Of Oil and Gas Production

91% local content (goods and services)

Increasing National Capacity In Oil And Gas Industry

99% skilled national workforce

Security of domestic Fuel Supply

FUEL POLICYFUEL POLICYFuel Supply SecurityFuel Categorization

and Industrial Feedstock

Increasing added value for

Fuel CategorizationPricing PolicyFuel DiversificationF l St d d d Q lit

© DJMIGAS 2010

sustainable developmentFuel Standard and QualityFuel Efficiency

MINISTRY OFMINISTRY OF

E&MRE&MR

UPSTREAM CONDITION IN UPSTREAM CONDITION IN INDONESIAINDONESIA

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

100 105 110 115 120 125 130 135 140100 105 110 115 120 125 130 135 140100 105 110 115 120 125 130 135 14060 TERTIARY SEDIMENTARY BASINS in INDONESIA

51

4

111

3

614

551

4

111

3

614

02

3

10

9 1316

15

14

3

45

1311

25 7

1

2

7 16

89

10

15

14

13 2122

12

002

3

10

9 1316

15

14

3

45

1311

25 7

1

2

7 16

89

10

15

14

13 2122

12

-55

6 7

8

12

1614

1

2 6

710

9

15

14

12

4

54

11

8 10

1918

17

20

-5-55

6 7

8

12

1614

1

2 6

710

9

15

14

12

4

54

11

8 10

1918

17

20

-108 63 -10-108 63

Frontier Basin (22)Drilled Basin, No Discovery yet (15)1. South Java2. Biliton3. Melawi4 Asem-Asem

Producing Basin (16)1. North Sumatera2. Central Sumatera3. South Sumatera4. West Natuna5 Sunda

Drilled and Proven Discovery, but not Production yet (7)1. Sibolga2 Bengkulu

1. Ketungau2. Pembuang3. Lombok Bali4 Flores

12. South Obi13. North Obi14. North Halmahera15 East Halmahera

Frontier Basin (22)Drilled Basin, No Discovery yet (15)1. South Java2. Biliton3. Melawi4 Asem-Asem

Producing Basin (16)1. North Sumatera2. Central Sumatera3. South Sumatera4. West Natuna5 Sunda

Drilled and Proven Discovery, but not Production yet (7)1. Sibolga2 Bengkulu

1. Ketungau2. Pembuang3. Lombok Bali4 Flores

12. South Obi13. North Obi14. North Halmahera15 East Halmahera

Frontier Basin (22)Drilled Basin, No Discovery yet (15)1. South Java2. Biliton3. Melawi4 Asem-Asem

Producing Basin (16)1. North Sumatera2. Central Sumatera3. South Sumatera4. West Natuna5 Sunda

Drilled and Proven Discovery, but not Production yet (7)1. Sibolga2 Bengkulu

1. Ketungau2. Pembuang3. Lombok Bali4 Flores

12. South Obi13. North Obi14. North Halmahera15 East Halmahera4. Asem Asem

5. Lariang6. South Makasar7. Spermonde8. Sawu9. Manui10.Buton11 Misool

5. Sunda6. NW. Java7. NE. Java Sea8. NE. Java9. Barito10. Kutai11.Tarakan12 B

2. Bengkulu3. East Natuna4. Pati5. Sula6. Timor7. Biak

4. Flores5. Tukang Besi6. Minahasa7. Gorontalo8. Sala Bangka9. South Sula10.West Buru11 B

15. East Halmahera16. South Halmahera17. South Seram18. West Weber19. Weber20. Tanimbar21. Waropen22 J

4. Asem Asem5. Lariang6. South Makasar7. Spermonde8. Sawu9. Manui10.Buton11 Misool

5. Sunda6. NW. Java7. NE. Java Sea8. NE. Java9. Barito10. Kutai11.Tarakan12 B

2. Bengkulu3. East Natuna4. Pati5. Sula6. Timor7. Biak

4. Flores5. Tukang Besi6. Minahasa7. Gorontalo8. Sala Bangka9. South Sula10.West Buru11 B

15. East Halmahera16. South Halmahera17. South Seram18. West Weber19. Weber20. Tanimbar21. Waropen22 J

4. Asem Asem5. Lariang6. South Makasar7. Spermonde8. Sawu9. Manui10.Buton11 Misool

5. Sunda6. NW. Java7. NE. Java Sea8. NE. Java9. Barito10. Kutai11.Tarakan12 B

2. Bengkulu3. East Natuna4. Pati5. Sula6. Timor7. Biak

4. Flores5. Tukang Besi6. Minahasa7. Gorontalo8. Sala Bangka9. South Sula10.West Buru11 B

15. East Halmahera16. South Halmahera17. South Seram18. West Weber19. Weber20. Tanimbar21. Waropen22 J

© DJMIGAS 2010

11.Misool12.Palung Aru13.Waipoga14.Akimeugah15.Sahul

12.Bone13. Banggai14. Seram15.Salawati16.Bintuni

11.Buru 22. Jayapura11.Misool12.Palung Aru13.Waipoga14.Akimeugah15.Sahul

12.Bone13. Banggai14. Seram15.Salawati16.Bintuni

11.Buru 22. Jayapura11.Misool12.Palung Aru13.Waipoga14.Akimeugah15.Sahul

12.Bone13. Banggai14. Seram15.Salawati16.Bintuni

11.Buru 22. Jayapura

MINISTRY OFMINISTRY OF

E&MRE&MR

25

30

35

40

$700,000,000 $800,000,000 $900,000,000 $1,000,000,000

NEW CONTRACT & FIRM COMMITMENT

2001 2002 2003 2004 2005 2006 2007 2008 20090

5

10

15

20

25

$-$100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

FIRM COMMITMENT $136,050 $23,100, $140,922 $196,390 $85,001, $230,500 $639,467 $941,450 $323,178

NEW CONTRACT SIGNED 6 1 15 16 8 5 27 34 21

Total Firm Commitment 2001 - 2009 = US$ 2,7billion

$160 000 00040

NEW KKS & SIGNATURE BONUS

$20 000 000$40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 

510152025303540

2001 2002 2003 2004 2005 2006 2007 2008 2009

NEW CONTRACT SIGNED 6 1 15 16 8 5 27 34 21

SIGN. BONUS $30,750,0 $5,550,00 $26,853,0 $18,803,0 $6,650,00 $14,250,0 $61,530,0 $134,400, $47,605,0

$‐$20,000,000 

05

© DJMIGAS 2010

YEAR

NEW CONTRACT SIGNED SIGN. BONUS

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

EXPLORATION DRILLING

160

EXPLORATION DRILLING 2005 - 2009

100

120

140

60

80

100

0

20

40

Plan 79 117 111 145 84

Realization 45 82 73 70 75

2005 2006 2007 2008 2009

Plan Realization Discovery Success Ratio (%)

Discovery 16 31 28 34 35

Success Ratio (% ) 36 38 38 49 47

© DJMIGAS 2010

Plan Realization Discovery Success Ratio (%)

MINISTRY OFMINISTRY OF

E&MRE&MROIL RESERVESOIL RESERVES(AS OF JANUARY 1st 2009)

NAD

(AS OF JANUARY 1st 2009)

112.49 346.22

NATUNA121.01

NORTH SUMATRA

745.11

89.64

PAPUAMALUKU

43.11

NORTH SUMATRA

CENTRAL SUMATRAKALIMANTAN

4,028.67

902.42 51.95SOUTH SUMATRA

WEST JAVASULAWESI

570.66987.01

OIL RESERVES (MMS TB)

EAST JAVA

( )PROVEN = 4,303.10 MM STBPOTENTIAL = 3,695.39 MM STBTOTAL = 7,998.49 MM STB

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

INDONESIA OIL PRODUCTION 1980 – 2009

1,800.00

INDONESIA OIL PRODUCTION 1980 2009

1,400.00

1,600.00

1,000.00

1,200.00

D

600 00

800.00MB

OP

400.00

600.00

0.00

200.00

980

981

982

983

984

985

986

987

988

989

990

991

992

993

994

995

996

997

998

999

000

001

002

003

004

005

006

007

008

009

© DJMIGAS 2010

198

198

198

198

198

198

198

198

198

198

199

199

199

199

199

199

199

199

199

199

200

200

200

200

200

200

200

200

200

200

MINISTRY OFMINISTRY OF

E&MRE&MR

EFFORTS IN INCREASING PRODUCTION: 1999 EFFORTS IN INCREASING PRODUCTION: 1999 20120155EFFORTS IN INCREASING PRODUCTION: 1999 EFFORTS IN INCREASING PRODUCTION: 1999 -- 20120155

POD

Penemuan Baru EKS/New Fields

Penemuan Baru EKS/New Fields

ProductionRealization

ProductionPerformance

Penemuan Baru EKS/New Fields

New Fields

© DJMIGAS 2010

Drill & Opt

MINISTRY OFMINISTRY OF

E&MRE&MRGASGAS RESERVESRESERVES(AS OF JANUARY 1st 2009)

NAD

(AS OF JANUARY 1st 2009)

1.26 52.14

NATUNA5.55

NORTH SUMATRA

21.78

23.71

PAPUAMALUKU

NORTH SUMATRA

CENTRAL SUMATRAKALIMANTAN

10.57

17.7415.22

2.68SOUTH SUMATRA

WEST JAVA SULAWESI

3.685.30

GAS RESERVES (TSCF)

EAST JAVA

( )PROVEN = 107.34 TSCFPOTENTIAL = 52.29 TSCFTOTAL = 159.63 TSCF

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

INDONESIA GAS PRODUCTION 1980 – 2009INDONESIA GAS PRODUCTION 1980 2009

10,000

8,000

9,000

6,000

7,000

D

4,000

5,000

MM

SCFD

2,000

3,000

0

1,000

© DJMIGAS 2010

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

MINISTRY OFMINISTRY OF

E&MRE&MR GAS BALANCE OF INDONESIA 2010GAS BALANCE OF INDONESIA 2010--20252025(EXISTING SUPPLY + PROJECT SUPPLY VS CONTRACTED DEMAND)(EXISTING SUPPLY + PROJECT SUPPLY VS CONTRACTED DEMAND)

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR GAS BALANCE OF GAS BALANCE OF INDONESIA 2010INDONESIA 2010--20252025(EXISTING SUPPLY + PROJECT SUPPLY VS CONTRACTED DEMAND + COMMITTED DEMAND))(EXISTING SUPPLY + PROJECT SUPPLY VS CONTRACTED DEMAND + COMMITTED DEMAND))

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

OPPOPPORTUORTUNITIES AND CHALLENGNITIES AND CHALLENGEE IN FRONTIER AREAIN FRONTIER AREA

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR1968-1978 : Union Oil Company

Acquired 10 941 km 2D Seismic Data

Exploration History of Sibolga Forearc Basin

Acquired 10,941 km 2D Seismic DataDrilled 19 exploration wells (six non-conomic

biogenic gas wells: C1: 98.92-100%)

1969-1973 : Marathon-Jenny Oil Group2D i i di Si l2D seismic survey surrounding Simeuleu

1996-1999 : Caltex (Nias PSC)10,000 sq km kmAcquired 1959 km 2-D seismic and gravity dataDrilled 1 exploration well

Meulaboh -1 : Objective Carbonate in Miocene Late

Forearc basin has the lowest HFU (Heat Flow Value) : 1.21 (S. Sumatera 2.56).

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

Banda outer ArcBanda outer Arc

Seram Bumera-1ST

VorwataSemai II

P d A

SeramBuru

Kola 1

Oseil

Proposed Area91,784.5km2

Kai Kai Besar-1

Kola-1

TanimbarOssulari-1Betano-1,2

Suai-2

Koba-1

Barakan-1

TimorMatai-4

GasOil showDry

Banli-1

Mola-1

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR Play type & Geological UncertaintyPlay type & Geological Uncertainty<<Play type>>Horst >>>> Giant Abadi Field!! (Proved Play)

<<Geological Uncertainty>>• Structure Definition >>>> Application of Latest Geophysical Technology• Source potential and distribution >>>> Confirmation of depression area• Reservoir Distribution >>>> Analogue from Surface Geology

NE

Abadi-1

SW

Koba-1

PleistoceneAOI

N

NESW

Olig

Cret

PlioceneMiocene

OligocenePaleogeneCretaceous

M.JuraPrecam

AOI

Abadi FieldAbadi Field

© DJMIGAS 2010

100km

50km?

Abadi FieldAbadi FieldMd Jur

Graben

MINISTRY OFMINISTRY OF

E&MRE&MR

TENTATIVE INDONESIA PETROLEUM BIDDING ROUND YEAR 2010

© DJMIGAS 2010

MINISTRY OFMINISTRY OF

E&MRE&MR

www.migas.esdm.go.idwww.migas.esdm.go.id

© DJMIGAS 2010

www.migas.esdm.go.idwww.migas.esdm.go.id